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First Party Special Needs Trust

FIRST PARTY SPECIAL NEEDS TRUST The Amendment to the Omnibus Budget Reconciliation Act of 1993 allows the person with disability to create the First Party Special Needs Trust (OBRA Payback Trust) himself or herself. In 1993, Congress passed a law as part of the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) allowing a person…

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REAL PROPERTY TRANSFERS

STARTING JANUARY 1, 2017, REAL PROPERTY IS TRANSFERRED INTO TRUST BY WRITTEN AND RECORDED CONVEYANCE OF LEGAL TITLE.   Public Act 009-609 amends section 6.5 of the Illinois Trusts and Trustees Act. The amendment will become effective January 1, 2017. The amendment requires that all transfers of real property to a trust must include a…

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Donating IRAs to Charity

On December 18, 2015 Congress passed the Protecting Americans from Tax Hikes Act (the Path Act of 2015) which, among many changes, renews as well as makes permanent the Charitable IRA rollover provision. This provision enables an individual over age 70 ½ to gift up to $100,000 annually from IRAs directly to charities without such…

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Congress Passes ABLE Act

Congress Passes ABLE Act Congress has passed the ABLE Act of 2014 (Achieving a Better Life Experience.)  Beginning in 2015, states may choose to develop savings plans akin to the popular 529 college savings plans.  The ABLE account may provide an efficient way for family members or friends to provide small gifts to benefit a…

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Law Passed to Help Military Veterans Safeguard Survivor Benefits for their Children with Disabilities

Law Passed to Help Military Veterans Safeguard Survivor Benefits for their Children with Disabilities As part of the National Defense Authorization Act (NDAA) of 2015, Congress will allow a special needs trust (SNT) to be designated to receive military Survivor Benefit Pans on behalf of the Retiree’s child with a disability. Prior to this law,…

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2015 Estate Tax Update

2015 Estate Tax Update The amount that individuals may transfer by lifetime gift or at death free of federal estate tax will be increasing to $5,430,000 for 2015, up from the $5,340,000 exemption in effect for 2014.  Illinois continues to impose a separate state estate tax and its exemption remains at $4,000,000.  While the federal…

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Eligible Wartime Periods for V.A. Pension Benefits

ELIGIBLE WARTIME PERIODS FOR V.A. PENSION BENEFITS If you, or your deceased spouse, served during wartime you may be eligible to receive V.A. pension benefits or Spousal benefits. The V.A. recognizes the following wartime periods to determine eligibility for VA Pension benefits: World War I (April 6, 1916 – November 11, 1918) World War II…

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